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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended
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Dec. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Outstanding Swap Agreements | Details of outstanding hedging instruments as of December 30, 2023 are presented below:
Maturity Date of the Hedging Instrument |  | Currency / Unit of Measure |  | Notional Value
|  |  |  | (In millions)
Hedging of interest rate risk |  |  |  |
January 2034 |  | U.S. Dollar |  | 500
Hedging of foreign currency risk |  |  |  |
Various (January 2024) |  | Swedish Krona |  | 101
Various (January 2024 to April 2024) |  | British Pound Sterling |  | 17
May 2024 |  | Mexican Peso |  | 439
April 2025 |  | Canadian Dollar |  | 180
January 2029 |  | Euro |  | 470
Hedging of fuel risk |  |  |  |
Various (January 2024 to March 2026) |  | Gallons |  | 57
Schedule of Derivatives Balance Sheet Location Table | The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of December 30, 2023 and July 1, 2023 are as follows:
|  |  | Derivative Fair Value
| Balance Sheet location |  | Dec. 30, 2023 |  | Jul. 1, 2023
|  |  | (In thousands)
Fair Value Hedges: |  |  |  |  |
Cross currency swaps | Other assets |  | $ | 1,198 |  |  | $ | — |
Interest rate swaps | Other assets |  | 24,557 |  |  | — |
Cross currency swaps | Other current liabilities |  | 1,497 |  |  | 1,262 |
Cash Flow Hedges: |  |  |  |  |
Fuel swaps | Other current assets |  | $ | 168 |  |  | $ | 102 |
Foreign currency forwards | Other current assets |  | 74 |  |  | 624 |
Fuel swaps | Other assets |  | 136 |  |  | 40 |
Fuel swaps | Other current liabilities |  | 10,372 |  |  | 17,932 |
Foreign currency forwards | Other current liabilities |  | 642 |  |  | 404 |
Fuel swaps | Other long-term liabilities |  | 2,794 |  |  | 5,637 |
Net Investment Hedges: |  |  |  |  |
Cross currency swaps | Other current assets |  | $ | 3,377 |  |  | $ | — |
Cross currency swaps | Other long-term liabilities |  | 25,738 |  |  | — |
Schedule of Location and Effect of Derivative Instruments and Related Hedged Items | The location and amount of gains or losses recognized in the consolidated results of operations for fair value hedging relationships for each of the periods, presented on a pretax basis, are as follows:
|  | 13-Week Period Ended |  | 26-Week Period Ended
|  | Dec. 30, 2023 |  | Dec. 31, 2022 |  | Dec. 30, 2023 |  | Dec. 31, 2022
|  | (In thousands)
Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value hedges are recorded |  | $ | 154,925 |  |  | $ | 132,042 |  |  | $ | 295,899 |  |  | $ | 256,192 |
Gain or (loss) on fair value hedging relationships: |  |  |  |  |  |  |  |
Interest rate swaps: |  |  |  |  |  |  |  |
Hedged items |  | $ | (30,298) |  |  | $ | (2,685) |  |  | $ | (30,298) |  |  | $ | (309) |
Derivatives designated as hedging instruments |  | 22,066 |  |  | 742 |  |  | 22,066 |  |  | (5,501) |
Cross currency swaps: |  |  |  |  |  |  |  |
Hedged items |  | $ | (2,711) |  |  | $ | — |  |  | $ | 285 |  |  | $ | — |
Derivatives designated as hedging instruments |  | 2,711 |  |  | — |  |  | (285) |  |  | — |
The gains and losses on the fair value hedging relationships associated with the hedged items as disclosed in the table above consist of the following components for each of the periods presented:
|  | 13-Week Period Ended |  | 26-Week Period Ended
|  | Dec. 30, 2023 |  | Dec. 31, 2022 |  | Dec. 30, 2023 |  | Dec. 31, 2022
|  | (In thousands)
Interest expense |  | $ | (3,250) |  |  | $ | (1,940) |  |  | $ | (3,250) |  |  | $ | (3,879) |
Decrease in fair value of debt |  | 27,048 |  |  | 745 |  |  | 27,048 |  |  | (3,570) |
Foreign currency gain (loss) |  | (2,711) |  |  | — |  |  | 285 |  |  | — |
Hedged items |  | $ | (33,009) |  |  | $ | (2,685) |  |  | $ | (30,013) |  |  | $ | (309) |
The location and effect of cash flow, net investment, and excluded components of fair value hedges on the consolidated statements of comprehensive income for the 13-week periods ended December 30, 2023 and December 31, 2022, presented on a pretax basis, are as follows:
| 13-Week Period Ended Dec. 30, 2023
| Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives |  | Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income |  | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
| (In thousands) |  |  |  | (In thousands)
Derivatives in cash flow hedging relationships: |  |  |  |  |
Fuel swaps | $ | (24,524) |  |  | Operating expense |  | $ | 669 |
Foreign currency contracts | (507) |  |  | Cost of sales / Other income |  | — |
Total | $ | (25,031) |  |  |  |  | $ | 669 |
Derivatives in net investment hedging relationships: |  |  |  |  |
Cross currency contracts | $ | (22,361) |  |  | N/A |  | $ | — |
Derivatives in fair value hedging relationships: |  |  |  |  |
Change in excluded component of fair value hedge | $ | 210 |  |  | Other expense (income) |  | $ | — |
| 13-Week Period Ended Dec. 31, 2022
| Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives |  | Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income |  | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
| (In thousands) |  |  |  | (In thousands)
Derivatives in cash flow hedging relationships: |  |  |  |  |
Fuel swaps | $ | 1,140 |  |  | Operating expense |  | $ | 12,377 |
Foreign currency contracts | 49 |  |  | Cost of sales / Other income |  | — |
Total | $ | 1,189 |  |  |  |  | $ | 12,377 |
Derivatives in net investment hedging relationships: |  |  |  |  |
Foreign denominated debt | $ | (44,999) |  |  | N/A |  | $ | — |
The location and effect of cash flow, net investment, and excluded components of fair value hedges on the consolidated statements of comprehensive income for the 26-week periods ended December 30, 2023 and December 31, 2022, presented on a pretax basis, are as follows:
| 26-Week Period Ended Dec. 30, 2023
| Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives |  | Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income |  | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
| (In thousands) |  |  |  | (In thousands)
Derivatives in cash flow hedging relationships: |  |  |  |  |
Fuel swaps | $ | 9,975 |  |  | Operating expense |  | $ | 3,003 |
Foreign currency contracts | (791) |  |  | Cost of sales / Other income |  | — |
Total | $ | 9,184 |  |  |  |  | $ | 3,003 |
Derivatives in net investment hedging relationships: |  |  |  |  |
Cross currency contracts | $ | (22,361) |  |  | N/A |  | $ | — |
Derivatives in fair value hedging relationships: |  |  |  |  |
Change in excluded component of fair value hedge | $ | 184 |  |  | Other expense (income) |  | $ | — |
| 26-Week Period Ended Dec. 31, 2022
| Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives |  | Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income |  | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
| (In thousands) |  |  |  | (In thousands)
Derivatives in cash flow hedging relationships: |  |  |  |  |
Fuel swaps | $ | (35,155) |  |  | Operating expense |  | $ | 25,362 |
Foreign currency contracts | 335 |  |  | Cost of sales / Other income |  | — |
Total | $ | (34,820) |  |  |  |  | $ | 25,362 |
Derivatives in net investment hedging relationships: |  |  |  |  |
Foreign denominated debt | $ | (13,653) |  |  | N/A |  | $ | — |
The location and carrying amount of hedged liabilities in the consolidated balance sheet as of December 30, 2023 are as follows:
| Dec. 30, 2023
| Carrying Amount of Hedged Assets (Liabilities) |  | Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities)
| (In thousands)
Balance sheet location: |  |  |
Long-term debt | $ | (518,622) |  |  | $ | (27,048) |

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